Stephen A. Milne Retires as Erie CEO

January 18, 2002

Stephen A. Milne, president & CEO of the Erie Insurance Group announced that, due to the condition of his health, he would retire from the company effective today. Jan Van Gorder, Sr. Exec. VP, secretary and general counsel, will serve as acting CEO.

Milne will remain on the Board of Directors of the Erie Indemnity Company, the principal management company of the Erie Insurance Group. In November 1999, he was diagnosed with amyotrophic lateral sclerosis (ALS) more commonly known as Lou Gehrig’s Disease. In September he recommended that Erie’s Board of Directors form a selection committee to identify his eventual replacement. The committee is well into the process of interviewing candidates for the position.

With more than 30 years of insurance experience, Van Gorder is well qualified to serve as interim chief until a new CEO is selected. He joined Erie in 1981 as VP, secretary and general counsel and was named Sr. Exec. VP in December 1990. He’s active in legal and legislative committees of the NAII and is a member of the board of directors of the Insurance Federation of Pennsylvania, Inc., the Pennsylvanians for Effective Government and the Pennsylvania Professional Liability Joint Underwriting Association.

In a letter to agents and employees, Milne expressed great confidence in the leadership abilities of Van Gorder and the company’s senior management team.

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